Plymouth’s King Point Marina and six investment properties have been put up for sale by owners Sutton Harbour Group as part of a financial restructuring plan.
The 171-berth marina opened in 2013 and has a range of facilities including an amenity block, reception area, car park and restaurant.
The marina was 86% occupied for the year and had a record year for berthing revenue.
Berthing prices for Sutton Marina were frozen for the 2023/2024 season, recognising the impact of work to the nearby lock cills.
At the end of 2023, Sutton Jetty, which housed the marina office and amenity facilities, was closed on the advice of structural engineers.
Office space has been relocated within SHG’s office and temporary amenity facilities have been installed in the marina car park.
The amenities are due to move to a floating unit which is due for delivery in December 2024.
The new unit will contain five wet rooms and a disabled access wet room.
SHG’s financial results show after-tax losses of more than £3 million, almost double that of the previous year.
The company is confident that actions underway will address the principal risk of unsustainable debt levels whilst current higher interest rates prevail.
Philip Beinhaker, SHG executive chairman
The Group has unsustainable debts of £24.8 million and had to carry out refinancing with its bank which provided the Group with maximum funding of £21.7 million.
The bank is targeting a £10m reduction in its lending, to £11.8m, by March 2025.
The loan sets out debt-reduction milestones which the bankers state needs to be met by the sale of assets. Interest is also payable on the loan.
“The group has placed selected assets for sale (being six investment properties, and King Point Marina) to assist with its finance restructuring plan,” stated the Group’s latest financial report.
Philip Beinhaker, SHG executive chairman, added: “The company is confident that actions underway will address the principal risk of unsustainable debt levels whilst current higher interest rates prevail.
“The company is committed to resolve the current challenges, which once settled, will allow management to bring forward additional new projects to improve the attractiveness of the Sutton Harbour area for living, working and leisure.”
The challenging year was exacerbated by a loss on the Group’s Harbour Arch Quay development despite all 14 apartments being sold off plan. The Group saw its annual interest payments nearly double to £2 million.
In addition, two phases of works undertaken by the Environment Agency to replace the Sutton Harbour lock cills resulted in an exceptional cost of £236,000 to provide back-up fish landing facilities at another location in Plymouth.
Legal costs totalling £623,000 were spent on two ongoing disputes and there is an arbitration hearing against the Environment Agency scheduled for November, about responsibility for the ongoing maintenance of Sutton Harbour Lock.
